State HBAs Fight Local Roadblocks with Help From NAHB Legal Action Fund
The NAHB Board of Directors recently approved six grants recommended by the Legal Action Committee at its latest meeting during the 2025 International Builders’ Show in Las Vegas last month.
The new Legal Action Fund application deadline for consideration at the NAHB Spring Leadership Meeting is May 15, 2025. Here are the cases that were funded at IBS 2025:
New Mexico HBA
The Builders Trust New Mexico (BTNM), a self-insured fund focused on workers’ compensation in construction, tried to sever ties with the New Mexico Home Builders Association (NMHBA) after decades of working together.
Originally formed in the 1980s to address workers’ compensation insurance, BTNM now seeks to remove the NMHBA and replace it with another trade group. This issue involves the established risk pool and issues that bear directly on member coverage and benefits.
Notwithstanding other issues related to the substitute trade group which are not within the purview of the Committee’s scope of review, the Board approved a grant of $10,000 as this case could set a precedent where self-insured groups could unilaterally change their sponsoring trade association.
Pennsylvania Builders Association
The case centers around a 19,000-square-foot mansion a couple purchased in 2016, which they later claimed had construction defects that violated building codes. The home builder invoked Pennsylvania’s Statute of Repose, which bars claims filed more than 12 years after construction completion. The trial and appellate courts ruled in favor of the home builder, determining the claims were time-barred. The Pennsylvania Supreme Court has agreed to review whether construction must fully comply with building codes to be considered “lawfully performed” under the Statute of Repose.
Statues of repose are important to protect small builders. Therefore, the Board approved a grant of $25,000. NAHB Legal Staff also will coordinate with the Pennsylvania Builders Association to file an amicus brief in this matter.
Builders Association of Minnesota
The Builders Association of Minnesota (BAM) is challenging Minnesota’s new independent contractor law, which introduces a more complex 14-factor test for worker classification and grants the state broad enforcement powers, including stop-work orders for violations. BAM argues that the law conflicts with the National Labor Relations Act (NLRA) by imposing stricter standards that disrupt the national framework for labor relations. The legal challenge, currently in federal court, contends that the law could create a patchwork of conflicting state regulations, increasing costs and legal uncertainty for contractors.
The Board approved a grant of $5,000 to support BAM.
Heatherwood Communities (Member)
This case challenges a move by the Town of Hempstead (N.Y.) to stall development under a Transit Oriented Development Ordinance (TOD), which left builders with pending building permits in limbo. Plaintiffs, who had already spent over $30 million acquiring land and preparing for construction, suddenly found their project wiped out when the Town caved to NIMBYs and effectively repealed the ordinance without proper environmental review or following legal procedures for zoning changes. The lawsuit argues that the Town’s repeal violated developers' vested rights, as they had already committed substantial resources based on the previously approved zoning.
The Board approved a grant of $25,000 to support the member.
Maryland BIA
This legal challenge was filed by the Maryland Building Industry Association (MBIA) and other trade associations against the Maryland Department of the Environment over the state's Building Energy Performance Standards (BEPS). Enacted in December 2024, BEPS requires commercial and multifamily buildings over 35,000 square feet to meet strict emissions standards, ultimately reaching net-zero emissions by 2040. This effectively bans gas appliances. MBIA argues that the standards violate the federal Energy Policy and Conservation Act (EPCA), which preempts state regulations on energy use for federally covered appliances. The lawsuit, filed in January 2025, seeks to invalidate BEPS, claiming it will increase costs, limit consumer choice, and harm the construction industry.
The Board approved a grant of $25,000 to support additional efforts to fight another gas ban.
New Jersey Builders Association
The New Jersey Builders Association (NJBA) is challenging municipalities attempting to reduce their affordable housing obligations under New Jersey's 2024 affordable housing law. The law requires towns to identify housing opportunities and update zoning plans, but 160 municipalities are seeking downward adjustments that would reduce the statewide need by over 20% (19,000 units). NJBA argues these reductions violate statutory intent and should be deferred until a full housing analysis is completed. The organization filed responses in 160 cases by Feb. 28, 2025, and expects expedited review from a newly created adjudicatory program. NJBA warns that if these reductions are allowed, it could set a precedent for other states to weaken affordable housing mandates relied upon by NAHB members, thereby restricting both affordable and market-rate housing development.
The Board approved a grant of $25,000 to support efforts to maintain affordable housing programs that fall within the purview of this zoning law.
If you have a case or potential case that could use funding, apply for a Legal Action Fund grant by May 15, 2025, for consideration at the Spring Leadership Meeting.